Heating bills to soar for millions of Britons
Pastor Dale Morgan
Heating bills to soar for millions of Britons*
By Harry Wallop, Consumer Affairs Correspondent
Last Updated: 1:37am GMT 26/12/2007
One million households face soaring heating bills as a result of the
surging price of oil on the global markets.
Many families will have to pay an extra £400 to heat their homes and
fuel their cookers because of sharp hikes in the price of central
heating oil.
While most of Britain's 23 million homes are linked up to the central
gas mains, just over 1 million properties - mostly in rural areas - use
oil to fire up their boilers or cookers, such as Agas.
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The price of this oil has climbed steeply in recent months as its price
is directly linked to the price of crude oil on the global market.
Oil has traded consistently above $90 a barrel during December, with
many analysts speculating that it is only a matter of time before the
$100 barrier is breached.
Strikes by French oil refinery workers combined with clashes on the
border between Iraq and Turkey have led to speculation that oil supplies
will be limited in the coming weeks, pushing the price up once again.
The price of central heating oil has increased from 33.5 pence a litre
in May to 45 pence a litre this week, according to Southern Counties
Fuels, one of the biggest distributors of oil.
Though the price is usually lower in the summer, this week's price is a
full 10 pence more than last winter.
Nicole Page Croft, a mother of three young children who lives in
Oxfordshire, relies on heating oil to fire up her Aga and the central
heating.
"It's crazy at the moment," she said.
"We've turned off the central heating to try and cut down on our bills
because it is so expensive at the moment. Most of our neighbours have
done the same."
Families connected to the gas mains have been sheltered from the turmoil
on the world markets.
Gas prices are only loosely related to the price of oil, and gas bills
have fallen on average by 15 per cent during 2007.
However, for those using central heating oil, the cost of refilling a
standard large tank of 2,600 litres - which needs to be refilled every
nine months or so - has shot up from £871 to £1,170.
Steve Thomas, a guesthouse owner in Windermere, Cumbria, has thrown in
the towel and two weeks ago ditched his oil boiler in favour of being
connected to the gas mains.
"We are very lucky that we can do that. I would hate to feel trapped
because of where I live and be at the mercy of speculators and the world
markets," he said.
He estimates the cost of refilling his tank has climbed from £300 10
years ago to more than £1,000 now.
Jeremy Hawksley, director general of Oftec, which represents oil
distributors, said: "Oftec urges domestic oil users to make sure their
boiler is running at its most efficient by making sure it's serviced
regularly. A properly maintained boiler will run more efficiently and
save money."